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Uber and Lyft have each enlisted one-half of what was once a high-profile Washington
lobbying duo to help get their voices heard in Congress.

Heather Podesta, the founder of Invariant, is lobbying for Uber on labor, transportation,
and other issues. Tony Podesta—Heather’s former husband—is the chairman of Podesta
Group, a government relations firm broaching similar subjects on Capitol Hill for
Lyft.

The Podestas aren’t the only lobbyists working for the ride-sharing companies, but
their involvement is a sign that Uber and Lyft are serious about having a say in any
potential legislation affecting the sharing economy. The fiercely competitive businesses
have largely common interests in Washington.

That includes ongoing discussions about how to classify drivers and other “gig” workers,
who are largely treated as independent contractors. Uber and Lyft are fighting a variety
of court battles over the contractor designation, which means drivers aren’t covered
by minimum wage and overtime laws, arguably don’t have the right to unionize, and
generally aren’t entitled to workers’ compensation and unemployment insurance benefits.

“We need to continue to push the conversation about drivers’ earnings to make sure
they are making a living wage,” James Conigliaro, a union advocate who runs an Uber-sponsored
guild for drivers, told Bloomberg BNA. “We have to start experimenting with how we
make these jobs better for the workers.”

Uber and Lyft declined to comment for this story. Heather Podesta and Tony Podesta
didn’t respond to Bloomberg BNA’s requests for comments.

Super Lobbyists

Heather Podesta is working to “introduce member offices to the presence and operation
of Uber in districts and states,” according to a lobbying disclosure. Podesta Group
said it’s talking to lawmakers about “independent contractor policies.”

Heather and Tony Podesta divorced in 2014, ending an 11-year marriage during which
they ran separate high-powered lobbying shops. The couple contributed more than $300,000
to political campaigns during the 2014 election cycle.

Uber paid Invariant $60,000 for its services in the first half of 2017, according
to lobbying disclosures, and Lyft shelled out $80,000 to Podesta Group during the
same time. The companies have also identified portable benefits for workers as an
area of interest.

They’ve hired other lobbyists to work on tax and transportation issues. The companies
don’t have to pay Social Security and Medicaid taxes for independent contractors.

Benefits Push

Portable benefits are the low-hanging fruit in terms of potential policies to support
ride-share drivers and other gig workers. A wide variety of stakeholders have expressed
support for some sort of model that would allow employers to pay into a benefits pool
on a flexible, pro rata basis and give workers the ability to take those benefits
with them when they change jobs.

“There’s a push both from the workers and the company side to offer some form of benefits,”
Conigliaro said. “Whether a compromise comes out in the form of legislation—can’t
be sure.”

Sen. Mark Warner (D-Va.) and Rep. Suzan DelBene (D-Wash.) earlier this year introduced
a measure that would create a $20 million Labor Department grant program for states,
local governments, and nonprofits to tinker with portable benefits for gig workers.
Although that legislation shows no signs of moving in the GOP-controlled Congress,
states including Washington, New York, and New Jersey are also considering portable
programs.

The biggest players in the sharing economy have also said they’re interested in offering
some benefits to workers, but they’re concerned the moves would mean they have to
reclassify the workers as employees for liability purposes. Several have lobbied for
narrow limits on that liability as part of any portable benefits legislation.

Uber has also taken some steps recently to play nice with its drivers. That includes
a pilot program in which it partners with insurance companies in eight states to offer
workers’ compensation benefits to drivers injured on the job and a new “180 Days of
Change” initiative in which the company has pledged to enhance services for drivers.

To contact the reporter on this story: Chris Opfer in New York at
copfer@bna.com

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